ZAGREB, 13 Nov, 2021 - President Zoran Milanović on Saturday criticised Prime Minister Andrej Plenković's statement that he expected Milanović to release a letter from the military chief-of-staff, saying "such cynicism and contempt for the truth and rules is ruining Croatia spiritually and materially."

That letter is to his defence minister and is classified, Milanović told press. In the letter, he said, the military chief-of-staff "warns, asks, even tells (the minister) that he is harassing the entire system, that he is strategically mobbing him and jeopardising the system."

"That document is not secret, I can declassify and make it public tomorrow, but I wanted Plenković to read it first. I wrote in the letter that I ask him to pay special attention to it... One corrupt loony can cause enormous damage, which is currently happening," the president said, alluding to Defence Minister Mario Banožić.

Speaking of a scandal involving the transport of bishops by a Navy vessel, he said the military must not be used for that and would not be any more as long as he was president. Banožić brought the bishops into an awkward position, he added.

As for the prime minister's statement that the Navy would not be ruined because of that transport, Milanović asked him if the EU would be ruined because of the recently arrested former EU funds minister Gabrijela Žalac.

Such a cynical approach by the prime minister when someone commits an evident offence with criminal intent, that's favouring, that's protection, he said.

Banožić is a case for OLAF and should be removed at once

Milanović said that due to Banožić's arbitrariness, the soldiers escorting him were not receiving per diems. That's a crime, that's his revenge. We'll see how to legally stop such barbarous behaviour, he added. "Banožić is a case for OLAF (European Anti-Fraud Office) and should be removed at once."

The president reiterated that he would "sit at the table only with Plenković," not with Banožić.

Fitch rating upgrade expected

Commenting on the Fitch Ratings agency's upgrade of Croatia's credit rating, Milanović said it had been announced and expected due to Croatia's upcoming euro area entry.

Asked to comment on Žalac's arrest earlier this week, he wondered how Plenković would explain in Brussels "this fiasco with EU funds and the people he trusted. Because this is a fiasco. Such outrageous things rarely happen. This is indeed an outrage."

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ZAGREB, 13 Nov, 2021 - President Zoran Milanović said on Saturday Croatia was richer by HRK 2 billion a year from EU funds but that it was too little.

"When you pay everything, when you absorb everything, when you remove the money for agriculture, which is actually a social fund for the preservation of agriculture which will last as long as France wants it to, that's HRK 2 billion a year, that's one-fifth of Zagreb's budget... that's too little," he said in Trogir at a meeting of the Town Council organised on the occasion of the day of the coastal town.

Milanović said the Recovery and Resilience Facility was something "where the funds are intended for us and we are yet to absorb them, or not."

"That's a huge test, for the administration first of all," he said, calling on the people of Trogir to "fight for that money."

In a dozen years, Trogir will not have fewer people than now, unlike some parts of Croatia which will, just like Bosnia and Herzegovina, which he said did not have just fewer Croats, but Serbs and Bosniaks as well.

"Those are trends which are almost impossible to stop," he said, but added that it was wrong "to give in to a moral panic and create the impression and pressure as if we were disappearing. That's very far from the truth."

He said that demographically, "we will revolve around the level we have reached for another hundred years."

"It's up to us to make life good today and to plan clearly like in the army, which is not being done, what will be in five or ten years. That includes money."

Milanović said the absorption of EU funds was a measure of success. We entered the EU and surrendered some of our natural and state rights and we did that consciously because nobody forced us, he added.

(€1 = HRK 7.5)

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ZAGREB, 13 Nov, 2021 - Prime Minister Andrej Plenković said on Saturday Croatia's likely entry into the euro area in 2023 was a signal and message to the investment community that the government's economic and fiscal policies were correct, just as in the case of Fitch Ratings, which upgraded Croatia's credit rating.

"The key and anchor of our economic course, as a result of which the European Commission, rating agencies and international financial institutions have increasing confidence in our policy, is accession to the euro area. Further guidance for our entry, which we expect in June and membership in the euro area on 1 January 2023, gives credibility to everything we are doing. People who deal with this matter in greater detail know what it means for the economy and stability. They see this driver of the Croatian economy as the most important one," Plenković told press.

"Croatia has been given the best investment rating in its history. We never had a BBB rating and a positive outlook. This indicates what that agency assesses, following what is going on with our fiscal policy."

A decision on Croatia's euro area entry is expected next June. A positive decision will "automatically signal" to agencies that Croatia will be even more predictable, more stable, and economically and financially even stronger, he said.

Fitch's upgrade and the European Commission's significant revision upwards of Croatia's growth forecast earlier this week are not important just for borrowing on the domestic and foreign financial markets, Plenković said, adding that this kind of "credentials" and legitimacy help SMEs, banks, citizens and the whole system.

Croatia's achieving the highest credit rating in its history, despite a number of negative circumstances, shows that the government knows where it is going and what is good for Croatia, he said.

He said that in the process of achieving its goal to enter the euro area, Croatia found itself in challenging and extremely risky circumstances, including entering the European Exchange Rate Mechanism in July 2020, just five days after a parliamentary election, which he said showed a high level of trust in Croatia.

Another important element is the stability of public finances, he said, recalling that Croatia had a budget surplus before the outbreak of the pandemic and that, had there been no pandemic, Croatia's public debt would have been below 60% of GDP.

Because of the COVID crisis and last year's GDP fall, several steps back were made, but this year already Croatia has returned to the previous public debt reduction course, Plenković said.

He highlighted growths in industrial production, commodity exports, construction and tourism, as well as the abundant EU funds Croatia will have at its disposal in this decade.

He said political stability was very important, as recognised by Fitch, adding that it was the fundamental prerequisite for any economic progress.

Plenković also underlined the importance of COVID vaccination "because it's closely related to the economy and finances."

He went on to say that during his government the relevant agencies have upgraded Croatia's credit rating six times - Fitch three, Standard & Poor's twice and Moody's once.

Asked why Moody's was the only one keeping Croatia's rating in the non-investmen zone, Plenković said every agency had its own approach and that Moody's last rating occurred exactly a year ago. "We hope they will follow what the other agencies are saying."

Fitch yesterday revised its forecast of Croatia's GDP growth this year from 5.5% to 8.9% and the European Commission revised it earlier this week from 5.4% to 8.1%.

Plenković recalled that the Croatian National Bank put the forecast at 8.5%. "If there is verified confirmation of the catchphrase 'let's underpromise and overdeliver', then it was fully confirmed from several competent instances."

He said the Commission's and Fitch's forecasts for this summer's tourist season were above those of the government.

If the season's results are at about 80% of the record year 2019, he said, it means the government and all other actors made a step forward given the pandemic and the related restrictions. This was confirmed by Euronews reports about Croatia as the country with the best tourism results in the Mediterranean, he added.

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ZAGREB, 13 Nov, 2021 - Prime Minister Andrej Plenković on Saturday repeated his appeal to all citizens to get vaccinated and called on those who refused to do so to get tested.

Speaking at a press conference, Plenković said that the number of people vaccinated so far has exceeded 2 million and that today the proportion of people who have received the first dose will most likely reach 60 per cent of the adult population and 50 per cent of the total population.

"Everyone has the right to protest, but what we are advocating is common sense, notably the view of medical professionals, doctors and scientists," the prime minister said. He added that people who do not want to get vaccinated can get tested very quickly and obtain a COVID certificate.

"We respect the people who are responsible and who have been vaccinated. And those who have not, we appeal to them to get vaccinated and to get tested," he said.

Plenković said that the Fitch Ratings agency had taken into account the vaccination rate when it upgraded Croatia's credit rating on Friday. "Ratings agencies watch what we do as a society, whether we stand in solidarity with one another, whether we are responsible, whether we understand what's going on." 

Commenting on the message from Croatian Roman Catholic bishops that citizens should not be coerced into getting vaccinated, Plenković said that the bishops should be asked whether they should have publicly called on people to get vaccinated.

He said that Pope Francis was clear in his statement when he appealed to people to get vaccinated.

"I believe that many of our bishops have been vaccinated, considering their age and the availability of the vaccines. As for freedom, it cannot be the reason not to respect the people who have been vaccinated," the prime minister said.

Asked whether he would meet with protesters against COVID certificates, he said he did not get the impression any of them wanted to talk with the government, and that peaceful protests were held to express an opinion.

"We live in a democracy. If anyone wants to talk, they can contact us and say what the problem is. I would like to see what it is about through dialogue," the prime minister said.

Peaceful protests against the introduction of mandatory COVID certificates for public-sector workers and people visiting state and public institutions, were held in several cities across the country on Friday evening. In Zagreb, protesters rallied outside the government building in St Mark's Square.

Commenting on the criticism from President Zoran Milanović regarding the transport of bishops by a Croatian Navy vessel, Plenković said he could not see the problem.

"This was about the ordainment of Bishop Vidović (on Hvar island). The Military Ordinariate had asked the defence minister in writing to arrange transport and the minister approved it. Is it a crime? It's not. Did the state collapse? It didn't," he said.

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ZAGREB, 13 Nov, 2021 - Two moderate earthquakes jolted the Glina area of central Croatia shortly after 11pm on Friday, the Croatian Seismological Service reported.

Their epicentres were four kilometres north-northeast of Glina, about 70 kilometres south of Zagreb.

The first tremor, measuring 3.2 on the Richter scale, was registered at 11.09pm and was followed by a magnitude 3.5 tremor at 11.21pm.

The Banovina region was devastated by a string of earthquakes in late December 2020. The disaster struck on 28 December 2020, when three tremors rocked the region, measuring 5.0, 4.7 and 4.1 on the Richter scale. They were a precursor to a 6.2 earthquake that hit the following day, leaving extensive property damage and seven people killed. The region was shaken by over 900 aftershocks over the next two and a half months.

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ZAGREB, 13 Nov, 2021 - Croatia has made slight progress in the digitalisation of its economy and society, moving up by one spot to 19th place in the European Commission's 2021 edition of the Digital Economy and Society Index (DESI).

"All EU Member States have made progress in the area of digitalisation, but the overall picture across Member States is mixed, and despite some convergence, the gap between the EU's frontrunners and those with the lowest DESI scores remains large. Despite these improvements, all Member States will need to make concerted efforts to meet the 2030 targets as set out in Europe's Digital Decade," the Commission said in a press release.

The DESI tracks member states' progress in digital competitiveness, human capital, broadband connectivity, integration of digital technology, and digital public services.

The best performers are Denmark, Finland and Sweden. Croatia lags behind Slovenia, but is ahead of Italy, Hungary, Poland and Bulgaria.

Although Croatia moved up to 20th place on connectivity, it still lags behind the EU average, with a score of 45.4 against 50.2. It scored best on integration of digital technology, ranking 13th with a score of 40 against the EU average of 37.6.

Croatia placed 16th on human capital, with a score of 46.7 against the EU average of 47.1. It performed worst on digital public services, ranking 24th with a score of 52 against the EU average of 68.1.

"While Croatia has good fast broadband coverage (86% national and 39% rural), its overall fixed broadband take-up is slightly below the EU average. One of the positive developments in connectivity is the assignment of harmonised spectrum for 5G in August 2021. This is a stepping stone for further acceleration of the digital transformation and is bringing benefits to both businesses and individuals," the report said.

"The level of at least basic digital skills remains slightly low compared with the EU average. In contrast, for above basic digital skills, Croatia comes in above the EU average. Croatia is progressing its successful implementation of the e-Schools programme, with all Croatian schools (1,320) included in the second phase of the programme," it added.

Croatian enterprises continued to take advantage of the opportunities offered by digital technologies, and there has been a sharp rise in popularity of e-invoices, with enterprises’ usage up from 12% in 2018 to 43% in 2020, following the amendment of the Public Procurement Act which made e-invoices mandatory for enterprises.

The report notes that the Ministry of Economy and Sustainable Development expects to finalise the 2021-2027 National Plan for the Digital Transformation of the Economy mid-2022. The 2021-2029 Smart Specialisation Strategy and the National Plan for the Development of Artificial Intelligence are also under development.

The Commission says that Croatia has taken several steps to provide more digital access to the public administration, for example through the eID notification platform for electronic payment of fees, and that the National Recovery and Resilience Plan lays out an ambitious roadmap, with reforms and investments touching on all dimensions of the Digital Economy and Society Index.

"While Croatia is making modest progress to reach the Gigabit Society objectives, significant improvements are still needed. High right-of way fees are an impediment to VHCN (very high capacity network) deployment. Efficient VHCN deployment could be further facilitated by absorption of EU funds, implementation of the connectivity toolbox and addressing the lack of coordination in permit granting between central and local government, in particular on permit granting and fees. The recent assignment of harmonised spectrum suitable for 5G usage is an important step towards digital transformation, enabling Croatia to take full advantage of a digitalised economy and society, both for households and businesses," the report concluded.

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ZAGREB, 13 Nov, 2021 - About 300 people marched through central Zagreb on Friday evening calling on the government to finally start acting on climate change by closing down the coal-fired thermal power plant Plomin.

The Climate March for Survival was organised by the youth initiative Fridays for Future Croatia and Extinction Rebellion Zagreb, which are part of the global movement to protect life on Earth. The march was organised on the last day of the COP26 UN climate conference in Glasgow.

Demonstrators carried placards saying "Time is running out", "Systemic change, not climate change", "Shorten the working week", "Wellbeing, not profit", "Healthy environment, not profit" and "If the planet was a bank, you would have saved it already."

"The purpose of this campaign is to send a message to the Croatian government to start acting on the climate emergency. We will present three demands and the first one is the urgent closure of Plomin, the only active coal-fired thermal power plant in Croatia which has absolutely no grounds to continue operating," Leonarda Šmigmator of Fridays for Future Croatia told the press.

"It is interesting that Prime Minister Andrej Plenković announced at the COP26 conference in Glasgow that Plomin would be closed down as late as 2033, while at the same time 40 countries pledged to stop using coal as an energy source. This means that Croatia is lagging behind again," she said, adding that Plomin workers should be allowed to retrain for work in other industries.

Šmigmator pointed out that the march participants demand that the climate change issue should be included in primary and secondary school curricula and that the Ministry of Economy and Sustainable Development should start communicating with scientists and involving them in its decisions.

Commenting on COP26, she said that the conference has disappointed everyone and that great expectations have not been fulfilled.

Among the marchers were Workers Front MP Katarina Peović with her daughter, trade union leader Krešimir Sever with  his son, New Left member of the Zagreb City Council Rada Borić, ombudsman Tena Šimonović Einwalter, presidential adviser on energy and climate Julije Domac, and Nikola Briškov from the Scientists for Climate initiative and ambassador and EU Climate Pact ambassador.

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ZAGREB, 13 Nov, 2021 - Croatia has registered 6,315 new coronavirus cases and 66 COVID-related deaths in the last 24 hours, the national coronavirus response team said on Saturday.

Currently, there are 39,995 active COVID cases in the country, including 2,107 persons who are being treated in hospitals, 269 of whom are on ventilators. A total of 29,246 people are self-isolating.

Since 25 February 2020, when the first infection was confirmed in the country, 534,601 people have been registered as having contracted the novel virus, of whom 9,840 have died and 484,766 have recovered, including 6,100 in the last 24 hours.

To date, 3,260,469 people have been tested for the SARS-CoV-2 virus, including 14,404 in the last 24 hours.

As of 12 November, 3,817,390 doses of COVID vaccine have been administered, and 49.88 per cent of the total population, or 59.63 per cent of the adult population, have been vaccinated. A total of 2,024,193 people have received at least one dose and 1,851,543 have been fully vaccinated, which is 54.73 per cent of the adult population.

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